Michael_Macdonald-XATSUK

Gold to post a corrective bounce in the coming months

FX_IDC:XAUUSD   Gold Spot / U.S. Dollar
The anticipated bounce from the USD1123.50 (76.4%) retracement of the December-July rally is unfolding, with Gold prices now approaching USD1200 as oversold studies begin to stabilise.

A push above here is looked for, as investors sentiment gradually improves, but the USD1300 break level is expected to prove difficult to reach, as the Tension Indicator (not shown) continues to weaken and background studies turn mixed.

An unexpected close below the USD1122.80 low of December 2016, however, will negate higher levels, and open up congestion around USD1100, as the July bear trend gathers traction